Contrary to popular belief, a prenuptial agreement is not only for the wealthy and the famous. If you think you can afford to lose a good chunk of your net worth then by all means get married without a prenup. But if you are worried that you might not have enough to be comfortable in case of a separation, then you must consider getting a prenuptial agreement.
What are the odds?
As much as we want to be romantic about getting married, reality can slap and smack you real hard. In the United States, about half of the marriages end their stories with a divorce. You wish and pray that yours will last forever but it is also good to be prepared.
Community property
When you get married, under the law, you and your spouse are considered a single entity in terms of being an economic unit. So half of what you earn or anything that increases in value belongs to your partner. This is still true even if your partner did not work and just sat in front of the television all day.
Retirement Account
If you are saving for your retirement, you may think that you have enough money to help you go thru it comfortably. But what if you only get half of this retirement plan, you might start imagining yourself working until your 70’s.
Business ownership
If you are part of a family business or a sole proprietor, you might have to sell out to cover for the share of your spouse. Another option, which is both awkward and far from being realistic, is to be partner in business with your ex-spouse.
Home ownership
If you think you are safe since your spouse name is not on the papers of your home, then think again. Your partner will have part ownership of your home whether he or she is on the deed of the property or not once you get married. In case there will be problems, you might end up paying for your ex-spouse’s share of the equity of the property.